Lord Keynes — Who Knew!? Banks Create Money out of Nothing

LK critiques the Richard A. Werner paper linked to a MNE yesterday.

Social Democracy For The 21St Century: A Post Keynesian Perspective
Who Knew!? Banks Create Money out of Nothing
Lord Keynes

Richard Werner — Hitch-hiker’s guide to monetary infrastructure

The Financial Times published an excellent letter from Prof Richard Werner, Chair in International Banking, School of Management, University of Southampton, UK on March 5, 2013 entitled “Hitch-hiker’s guide to monetary infrastructure”.

Positive Money
FT: Hitch-hiker’s guide to monetary infrastructure

I am no longer linking directly to publications that charge for access, which includes the WSJ, NYT, and FT.

You can find the full letter here.

Ralph Musgrave — Richard Werner says government should borrow from private banks – I’m baffled.

I didn't realize that Prof. Werner went insane. Or is this a sudden onset? Pity.

Why not just privatize the Bank of England again, and leave the banks alone in setting Libor? Then maybe they would feel warm and fuzzy and lend more.

Ralphonomics

Richard Werner says government should borrow from private banks – I’m baffled.
Ralph Musgrave

The Positive Money system – in Plain English

This proposal for reform of the banking system explains, in plain English, how we can prevent commercial banks from being able to create money, and move this power to create money into the hands of a transparent and accountable body.

It is based on the proposals outlined in Modernising Money (2013) by Andrew Jackson and Ben Dyson, which in turn builds on the work of Irving Fisher in the 1930s, James Robertson and Joseph Huber in Creating New Money (2000), and a submission made to the Independent Commission on Banking by Positive Money, New Economics Foundation and Professor Richard Werner (2010).

Positive Money
The Positive Money system – in Plain English

Download paper

See also How can we escape from our current dysfunctional money system?

These folks are pushing this hard.

Ellen Brown — How the Fed Could Fix the Economy—and Why It Hasn’t

Ellen looks at the orignal QE proposal of Richard Werner, who surfaced the idea in relation to the Japanese crisis in the Nineties. Werner has recently come into prominence due to his contribution to the development of Positive Money. See also Where Does Money Come From?: A Guide to the UK Monetary & Banking System by Andrew Jackson, Josh Ryan-Collins, Tony Greenham, and Richard Werner

Web of Debt
How the Fed Could Fix the Economy—and Why It Hasn’t
Ellen Brown